Skydance wonders if employees would be so kind as to lay themselves off with new buyout program

The new mega studio has $80 billion in debt and a few hundred redundant employees to lose. 

Skydance wonders if employees would be so kind as to lay themselves off with new buyout program

In what amounts to the least surprising news since Skydance successfully acquired its second century-old movie studio, Warner Bros., in less than a year, the newly conjoined company has begun the long process of ridding itself of the WBD employees it just welcomed to the family. Per The Hollywood Reporter, co-CEOs David Ellison and Ynon Kreiz sent a memo to the newly enlarged staff, informing them they will need to start coming into the office more regularly or stay home forever. The memo sympathetically lets the soon-to-be jobless know that they “don’t take any of this lightly,” but they’re building “a company that tells the stories people around the world love” and “embraces new ways to connect with audiences.” To do so, they’ll have to disconnect from the people who help tell those stories. The company has initiated a mandatory five-day in-office workweek while offering employees who may not like that an easy way out: A voluntary buyout program with personalized terms. 

The voluntary buyout begins Skydance’s seemingly impossible attempt at paying down the massive debt it took on by buying an already debt-ridden movie studio. Ellison, with help from his father and sovereign wealth funds from Saudi Arabia, Abu Dhabi, and the UAE, bought the studio for $110 billion and took on $80 billion in debt. Initially, Skydance seeks to pay down $6 billion of that through synergies and AI corner-cutting. But realistically, it’ll probably mostly be through layoffs. It was 363 days ago today that, after its $8 billion takeover of Paramount, Skydance announced 2,000 layoffs, about 10% of its global workforce. In a memo at the time, Ellison used that old chestnut about not taking these decisions “lightly.” Corporate mergers are like poetry; they rhyme. 

 
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